Alaunos Therapeutics (Nasdaq: TCRT) has completed the acquisition of Waltham, Massachusetts-based Velaris Therapeutics, a privately held biotech advancing a pulmonary arterial hypertension (PAH) pipeline built around ActRII-Fc ligand traps and complementary biologics. Alaunos said the transaction, combined with a concurrent USD 350 million private placement, provides a financial foundation to generate multiple proof-of-concept datasets in PAH, expecting data from Velaris's lead candidate VLR199 in 2028.
The financing, led by Fairmount with participation from Venrock Healthcare Capital Partners, T. Rowe Price, Wellington Management, and Janus Henderson Investors, is expected to support operations into 2029. Subject to stockholder approval of the preferred stock conversion, Fairmount-aligned directors will hold four of five seats on Alaunos's board.
VLR199, is an ActRIIA-Fc ligand trap designed to target the activin signaling pathway, which has been clinically validated in PAH by Merck's approved therapy Winrevair (sotatercept). Velaris is also developing VLR247 and VLR258, ActRIIA- and ActRIIB-based ligand traps engineered to spare BMP-9 and BMP-10, with the aim of reducing adverse effects associated with broader ligand binding. Its fourth program, VLR360, is an anti-PDGF-B monoclonal antibody targeting a complementary signaling pathway. Alaunos expects the financing to support proof-of-concept data for VLR199 and VLR360, alongside initial regulatory filings for VLR247 and VLR258.
The transaction represents a major strategic shift for Alaunos, which discontinued development of its Phase I/II TCR-T Library cell therapy program in August 2023, reduced its workforce by approximately 60%, and began exploring strategic alternatives.